HB485 Summary

• Creates the Education Retirees' Trust Fund for Cost-of-Living Adjustments as an irrevocable trust managed by the Teachers' Retirement System Board of Control to provide cost-of-living increases to retired education employees and beneficiaries.

• Funds the trust through legislative appropriations, 25 percent of net lottery proceeds dedicated to the Education Trust Fund, investment income, and gifts or grants.

• Trustees must report trust asset values to the Teachers' Retirement System's actuary by September 1 each year and transfer certified amounts when assets are sufficient to fully fund cost-of-living adjustments of one percent or greater, effective the following October 1.

• Trust assets are exempt from state taxation and creditor claims; trustees serve without compensation but may be reimbursed for reasonable expenses and are immune from suit except for willful misconduct or intentional wrongdoing.

• Act becomes effective upon passage and gubernatorial approval, contingent upon voter ratification of a constitutional amendment authorizing creation of a lottery.